U.S. economic woes and the proposed bank rescue plan being deliberated in Washington are taking their tolls on livestock futures. Thursday’s trading indicated that pork and beef prices will continue to suffer from the worsening economy. However, other factors also are putting pressure on livestock prices.
December corn futures also closed down Thursday and are down significantly from their highs last summer. “Recent USDA reports pointing to a slowdown have clearly negatively impacted corn prices,” according to the CME Group Daily Livestock Report.
The full economic impact of the current banking and credit crisis is really anyone’s guess. Adding to the uncertainty, is the indication that exports, flying high so far this year, may be hurt as demand from China and Russia show weakening.